Morning journal and courier., 1887-10-13
THE BANKERS IN COUNCIL.
Interesting Addresses and Papers 0
 she TreaRurv SuruIus.


 Interesting Addresses and Papers on
 the Treasury Surplus.
 PITTsBURG, Oct. 12.-The bankers con- vention opened to-day, Bishop Whitehead offering prayer. Ex-Chief Justice Agnew made the address of welcome. The most in teresting paper of to-day was that of ex- Comptroller Knox on the surplus. He com mended Secretary Fairchild's policy as far as tt went, and expressed regret that no per manent relief could be expected from Con- gress on the eve of presidential election. As to temporary relief he said: "The bill Of Senator Aldrich, which was pending in the Senate at the time of it's adjournment, pro vides that the 21s per cent. bonds herein authorized, issued in exchange for 411s per cents bonds, shall not be called in and paid so long as any bonds of the United States heretofore issued, bearing higher rate of interest, shall be outstanding and uncalled, and the last of such bonds originally issued under this act or the substitute therefor shall be the first called in; and this order of payment shall be folio wed until all of such bonds shall have been called in or paid' This bill also authorizes the issue
 
 value of the two and halfs. Such legisla- tion would immediately enhance the value of the 211s, and the holders of the fours, and particularly the national banks (who hold about 125 millions), would hasten to make the exchange in order to obtain the earliest numbers of the bonds, for the same reason that similar exchanges were promptly made for the three and halfs, and subsequently, for the thress at time those bonds were is- sued. Instead of seeking to buy the principal of the indebtedness, the government, by the proposed loan, seeks to purcha SC portion of the fu- ture interest. It says to the bondholder, you hold my note payable nineteen years hence, bearing per cent. interest. If you will sur render 115 per cent. of the interes and accept 21s per cent on the note instead of 4 per cent. will pay you certain sum in cash. This can afford to do bee ause by the use of this sum of money in this way gain from 21a to per cent. You can afford to accept the proposition because you can use the money pay you at 4, 5 and per cent. On account of the peculiar circumstances the exchange of bonds is profitable to both par ties. To the government because it releases it's surplus in payment of interest now at fair rate of interest upon the interest ad- vanced, which otherwise it must pay in smaller sums quarterly during the next nine teen years"
 In the afternoon Hon. Beriah Wilkins, of Ohio, delivered an address on HHow to avoid the accumulation of surplus in the future' He said the question could no longer be put aside and that prompt, thorough and heroic measures must be adopted by the Fiftieth Congress, which assemblies in December. After citing vsrious plans that had been sugs gested, including the distribution of the sur- plus among the States and appropriations for great public works, he said it must be done largely by a reduction in custom duties. He thought that the association, representing as it does the aggregated capital of the country, could do no wiser thing than to pass reso- lution demanding of Congress the repeal of surplus taxation to the end that the surplus in the treasury might be avoided. Repeal the tax on tobacco. reduce the duties on sugar, rice, salt, lumber, common cloth, window glass and certain kinds of iron products. A large portion of the tax on the circulation of national banks could well be remitted also. He closed by stating that the relief could revenues and taxation.
 William P. St. John, president of the Mer- cantile National bank of New York, followed in deeply technical paper on Possible Emergencies in the Money Market" Said he: Under the present treasury habit the only public moneys received by national banks as designated depositors are the depos- | it's made directly into the banks by revenue collectors Under this proceeding there is no inducement to 8 national bank now to see designation nor would there be in case of emergency. Suppose 0 bank to purchase government bonds (as the required security to the amount of sayl half 8 million dollars, then the accumulation of money under the 1 deposits of the particular revenue col ] lector instructed to deposit with that an important loss of interest to the bank up- on the money invested in the bonds and again because of the appointed method of paying over surplus moneys by the deposito- ries into the treasury there may be at any time a momentary sum in the banks 1 main in the depository; therefore to cover the point of safety exorbitant security is de- 1 manded of the bank.
 Colonel Exall, of Texas, the addressed the | convention on the progress and growth of l the South and West The following resolu- upon the approval of the executive council: l
 Whereas, The failure to agree upon a proper ex- tradition treaty between the United States and 1 Great Britain for the return of class of offenders who seem to be ever found with us: and
 Whereas, It has come to be matter of course nation of defauiters and embezzlers have immunity from arrest, trial and punishment by reaching l British possessions. where in Canada there are large numbers residing.
 Resolved That the executive committee are re- quested to appoint committee on behalf of the sociation represent to State department the great evils now existing and to urge the early ! amendment of our extradition treaties with Great Britain so that the existing evils may be abated.
 Letters of regret were read from John Sherman, Comptroller Trenholm, William W. Crops, H. M. Grady, J. Proctor Knott, J. A. Kasson, Carl Schurz, Secretary Fairchild, and the convention adjourned to meet again at 10 a. m. tomorrow. This evening re- ception was rendered the delegates at the Monongahela House.